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Downside and Drawdown Risk Characteristics of Optimal Portfolios in Continuous Time

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 12 - Chapter in an edited book (Author)peer-review

Abstract

Downside risk and drawdown risk measures are two important measures that qualify the risk characteristics of a portfolio. In this chapter, we consider three wellknown optimal dynamic strategies and examine in detail their risk characteristics in long-term investments and portfolio frontiers under various downside and drawdown risk measures. We determine which strategy among the three performs best in various parameter regions for a given downside or drawdown risk measure. An investigation on the correlation among different risk measures has also been carried out. © 2009 Elsevier B.V. All rights reserved.
Original languageEnglish
Title of host publicationSpecial Volume: Mathematical Modeling and Numerical Methods in Finance
EditorsAlain Bensoussan, Qiang Zhang
Place of PublicationAmsterdam
PublisherElsevier B.V.
Pages189-226
ISBN (Electronic)9780080931005
ISBN (Print)9780444518798
DOIs
Publication statusPublished - 2009

Publication series

NameHandbook of Numerical Analysis
Volume15
ISSN (Print)1570-8659

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